FT News Briefing The Economics Show: Would Trump’s tariffs really be that bad?
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Dec 1, 2024 Kimberly Clausing, a UCLA professor and former lead economist in the Biden administration's Office for Tax Policy, sheds light on the potential impacts of Trump's proposed tariffs. She discusses how tariffs could affect multinational corporations, consumers, and the economy at large. Clausing challenges the belief that foreign exporters will absorb costs, emphasizing that U.S. consumers often bear the brunt. She also critiques the current U.S. tariff strategy, highlighting its favoritism towards large corporations and arguing for a fairer economic approach.
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Trump's First-Term Economic Policies: A Moderate Damage Assessment
- Trump's first-term international economic policies were damaging, but not catastrophic, according to Kimberly Clausing.
- She rates the damage a 6 out of 10, with 10 being the worst.
Trump's Tariff Authority and Potential Congressional Involvement
- Trump has several executive authorities to impose tariffs unilaterally, including national security, trade practices, and emergency powers.
- There's discussion in the House about legislating tariffs to account for revenue in tax debates.
Trump's Strong Belief in Tariffs
- Trump's affinity for tariffs might hinder him from backing down, despite potential advice from figures like Elon Musk.
- He has fewer reputable advisors now, making it more challenging to temper his views.
